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The UAE’s AD Ports Group has signed a concession agreement for bulk and general cargo operations with Karachi Port Trust (KPT).
Under the terms of the 25-year concession agreement, Karachi Gateway Terminal Multipurpose Limited (KGTML), a joint venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, will develop, operate and manage the bulk and general cargo terminal berths 11-17 at Karachi Port’s East Wharf.
This agreement builds upon the concession agreement secured by AD Ports Group to develop, operate and manage Karachi Gateway Terminal Limited (KGTL) container terminal berths 6-10 at Karachi Port’s East Wharf in June 2023.
In addition to the 800 m quay for the container terminal, this new concession grants the joint venture 1,500 m of additional quay wall for general cargo and bulk operations adjacent to the container terminal and thus gives full operational control of Karachi Port’s East Wharf. General cargo operations will primarily handle steel, paper and clinker, while the clean bulk terminal will focus on grains and fertilisers.
The joint venture plans to invest approximately $75m in the first two years, including upfront fees, prepayments and investments in superstructure and equipment, followed by further investment of $100m within five years which will be used to increase efficiency and capacity by 75%, enabling the terminal to handle up to 14mn tonnes per annum.
Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports, said: “We aim to transform Karachi Port into a dynamic hub for global trade.”
Pakistan plays a significant role as a gateway to landlocked nations throughout Asia. The Commonwealth of Independent States (CIS) has become a significant trade corridor between east and west in the current global geopolitical context.
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